Only 40 percent of Americans have $1,000 in savings to cover a financial emergency or unexpected expense. Do you need money to pay for a medical expense, vacation, or start a business?
No matter the reason you need to borrow money—have you considered a title loan? It’s important to do your research before getting a title loan. Check out these title loan reviews and tips to help get the best car title loan.
1. Research the Lender
Make sure the lender is reputable. Car title lending is a popular form of non-traditional lending, and you will notice you have several options. Check out how the company started and look for online reviews.
You can also check out the Better Business Bureau for any reviews and complaints. There are several online lenders, so make sure the lender has a license to operate in your state.
2. Know Your Payment Options
Find out how you pay your loan, such as direct payments or paycheck withdrawal. You should also do your research on the terms. If you have a longer loan, your payments will be lower but you will be paying more finance charges monthly.
You want to be able to afford your loan, but you also want to make sure that your loan is outstanding for the shortest time.
3. Be Sure You Understand the Online Application and Approval
Some title loan lenders work only online, and others may want additional verification like a phone call or a meeting. The approval process is usually pretty quick.
Most title loan lenders will want to see your car for inspection before approving your loan. Online title loans are usually quicker if you are on a tight schedule.
4. Check for Repayment Penalties
It’s important to know if there are any penalties if you pay your loan off sooner than the repayment terms. Some companies charge a fee if you pay your loan off early. It’s always important to know all the terms of your loan upfront before agreeing to it because it can save you money in the long run.
5. Find Out About Your Car
There are two important things to check here: what types of cars do they accept and can you keep driving your car while the loan is active.
Some title loan lenders only accept car models from 2000 or newer, while others may go back into the 1990s. You should also check if there are any mileage restrictions.
Another important detail you need to check is whether you can have your car. Some title lending companies will keep your car during the loan while others may want to detect your moves with a tracking device.
Title Loan Reviews and Final Thoughts
It’s important that you know what you are signing up for. Follow these tips and check out title loan reviews from multiple companies to make sure you find a loan that meets your needs. You should always understand all terms of any loan.
Keep checking out our site for other advice on your home and lifestyle. If you are using this loan for home improvements, we have articles to help you manage these updates.